The Older Americans Program allotments are calculated using a statutory formula found in the Older Americans Act of 1965,
Title V, Section 506, as amended (P.L. 106-501, November 13, 2000). The allotment estimates are typically prepared and
distributed to the grantees in the spring preceding the program year beginning July 1.
Note: The appropriation for the Older Americans Program has traditionally been specified in two amounts: an amount
for the national sponsors (78 percent of total) and an amount for the state agencies (22 percent of total). However,
since the newly amended Act, first effective for Program Year 2001, the appropriation language now specifies only one appropriation total. Under the Act,
the funding proportions for national sponsors and State agencies may vary each year, depending on the total level of funding
available for the program, as described below.
Reservations
- Private employment projects: not more than 1.5 percent of the total appropriation.
- Territories: 0.75 percent of the total appropriation of which Guam, American Samoa, and the Virgin Islands receive
30 percent each; Northern Mariana Islands receives 10 percent.
- National Indian aging organizations and Pacific
Island and Asian American aging organizations: such sums as necessary.
Balance after Reservations -- Geographical State-by-State Distribution of Funds for National Sponsors
and State Agencies
First, the total amounts for national sponsors as a whole and for state agencies as a whole are determined under
one of the scenarios below. The”2000 level of activities” term used below is the number of positions in 2000 times
the budgeted cost per position, for both national organizations and State agencies.
If the balance equals the 2000 level of activities:
The total amount for the national sponsors and the state agencies
also equals their 2000 level of activities.
If the balance is less than the 2000 level of activities:
The national sponsors/state agencies are proportionally
reduced in total, as well as the geographic state distribution for each category.
If balance exceeds the 2000 level of activities:
The amount for the national sponsors and state
agencies, respectively for each category, is the sum of --
- their 2000 level of activities;
- of the amount of balance over 2000 level up to and equal $35 million:
75% national sponsors/25% state agencies; and
- of the amount of balance over 2000 level above $35 million:
50% national sponsors/50% state agencies.
Once the total amounts for national sponsors and state agencies are determined, funds are distributed geographically
state-by-state for each category using the formula prescribed in the Act. The formula that calculates the geographic
state-by-state distribution of the funding amounts for the nationals and state agencies, respectively, is applied to the total
amount for each, not just the amount above the 2000 level (described above) for each.
The formula uses the data factors of per capita income and age 55+ population and applies a minimum test such that no
state receives less than (a) their 2000 level of activities, (b) 0.5% of the total amount available for the national sponsors/state
agencies, or (c) 30% of the percentage increase in available funds for national sponsors/state agencies over the 2000 level.
The data factors are used to distribute the funds geographically among states based on the state relative share of an
allocation factor. For each state, the allocation factor is the product of the number of persons aged 55 and older in that
state and an inverse per capita income index. The inverse per capita income index cannot be less than 33 1/3 percent,
nor greater than 75 percent; the allocation factors for the District of Columbia and Puerto Rico are required by law
to be based on a 75 percent index.
Each geographic state's total funding is the sum of its national amount and its state agency amount.
Determination of Individual National Sponsor Allotment Levels
Historically, each national sponsor's allotment has been based on the previous year's level with an adjustment based on
the change in the total appropriation level for the program. If there is a reduction in the Older Americans appropriation
from one year to the next, after providing for the special reservation for organizations (described above) to receive their
minimum level, the reduction is prorated to the remaining individual sponsors based on their previous year's allotment.
This results in each sponsor (except NAPCS and NICOA) receiving the same percentage reduction. If there is an increase
in the funding for the national sponsors, the excess dollars available after considering NICOA and NAPCA are distributed
equally to the remaining sponsors. If a sponsor is unable to utilize its funds in areas which are underserved pursuant to the
Older Americans Act requirements, its funding may be reduced. The totals for each individual national sponsor are distributed
geographically by state so that the total of all national sponsors by state is consistent with the state distribution
for national sponsors described above.
